BB’s dollar purchase crosses $3b mark

Bangla Press Desk Total dollar purchases by the Bangladesh Bank have surpassed US$3 billion in the ongoing 2025-26 fiscal year, as the improving external sector conditions have prompted the central bank to shift from selling dollars to absorbing excess supply. 

BB spokesperson Arief Hossain Khan said on Sunday the central bank purchased another $115 million from three commercial banks. The dollars were bought at rates of up to Tk122.30 per US dollar, with Tk122.30 set as the cut-off rate. With the latest transaction, the central bank’s total dollar purchases in December rose to $920.50 million.

In FY26 so far, BB has bought a cumulative $3.04 billion from the banking system, marking a clear shift from the dollar-selling stance it had adopted during periods of acute foreign exchange stress in previous years.

Bankers and market analysts said the continued purchases reflect improving conditions in the external sector, supported by stronger export earnings and steady remittance inflows. The increased supply of dollars in the interbank market has prompted the central bank to absorb excess foreign currency to prevent a sharp appreciation of the taka.

They added that the intervention is also helping the Bangladesh Bank manage liquidity conditions in the banking system, as dollar purchases inject local currency while maintaining stability in the foreign exchange market.

In recent months, the interbank dollar market has remained relatively stable, in contrast to earlier periods of volatility driven by high import payments, global commodity price shocks and declining foreign exchange reserves.

Officials said Bangladesh Bank continues to operate under a market-based exchange rate regime, allowing the taka to be largely determined by demand and supply, while intervening periodically to smooth excessive fluctuations. The approach, they noted, aims to strike a balance between exchange rate flexibility and market stability, ensuring that neither sharp depreciation nor rapid appreciation disrupts trade, inflation management or overall financial stability.

BP/SP